Volkswagen to invest EUR 40m in solar, wind in green energy push

Volkswagen AG (ETR:VOW) will support the expansion of wind and solar energy across Europe with EUR 40 million (USD 45.19m) by 2025 as the German automotive group seeks to reach full carbon neutrality by 2050 and secure more green electricity for its electric cars.

The renewable energy pipeline supported by Europe's largest carmaker includes more than 20 projects that are expected to generate a total of some 7 TWh of green electricity, or enough to cover the annual consumption of 600,000 households, Volkswagen said on Wednesday. Fed into the local grid, this clean electricity should improve the carbon footprint of the German carmaker's electric vehicles. "Because e-mobility can only make an effective contribution to climate protection if electric cars are consistently charged with green electricity,” said chief executive Ralf Brandstaetter.

Most recently, the Wolfsburg-based group invested in a wind park located in Skellefteå, northern Sweden, acquiring a stake from wpd Onshore Aldermyrberget AB that generates some 100 GWh of electricity, enough for 27,000 households. From January to November, Volkswagen delivered 9,300 electric vehicles in the Scandinavian country and claims to command a 20% share in the local market.

Another project in the portfolio includes the construction of a solar plant in Tramm-Goethen in northeastern Germany jointly with energy major RWE AG (ETR:RWE). The solar farm, consisting of some 420,000 modules, is expected to start operation in early 2022.

Volkswagen will invest in more wind and solar projects in countries such as Spain, the UK and Finland where the firm's electric vehicles have a bigger market share.

As part of its net carbon neutrality strategy, Volkswagen is seeking to speed up the transition to electric mobility and raise the share of all-electric unit sales in Europe to 70% by 2030. The group is working also to achieve carbon-neutral production and systematic recycling of the high-voltage batteries from old electric vehicles.

(EUR 1 = USD 1.130)

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